Amazon reported $11.7 billion in subscription services revenue for Q1 2025, marking a 9.3% year-over-year increase. This segment accounted for 7.5% of Amazon’s total revenues. The company anticipates subscription service revenue will reach approximately $49 billion by 2025, reflecting a growth rate of 10.9% year-over-year. Key initiatives include enhancing Prime membership benefits and record delivery speeds enabled by improved inventory management.
Amazon faces intensified competition from Walmart and Apple in the subscription space, as they expand their offerings and seek to attract more customers. Walmart+ competes with Prime by providing benefits like free shipping and same-day grocery delivery, while Apple’s services account for over one billion paid subscribers, focusing on entertainment and digital content.
As of now, Amazon’s shares have grown by 0.8% year-to-date, underperforming the Zacks Internet – Commerce industry, which has seen a 7.4% increase. The Zacks Consensus Estimate for Amazon’s Q2 2025 earnings stands at $1.32 per share, indicating a projected 7.32% growth year-over-year.
